Harvey v.

Facey, 1893 AC 552 is a legal opinion which was decided by the British Judicial
Committee of the Privy Council, which in 1893 held final legal jurisdiction over most of the
British Caribbean.[1] Its importance in case law is that it defined the difference between an
offer and an invitation to treat. The Privy Council held that indication of lowest acceptable price
does not constitute an offer to sell. Rather, it is considered an offer to treat (i.e., to enter into
negotiations).

[edit]Background

The case involved negotiations over a property in Jamaica. Defendant Facey had been carrying
on negotiations with the Mayor and Council of Kingston to sell a piece of property to Kingston
City. On 7 October 1891, Facey was traveling on a train, and Appellant Harvey (who wanted the
property to be sold to him rather than to the City) sent Facey a telegram which said:
"Will you sell us Bumper Hall Pen? Telegraph lowest cash price-answer paid"

Facey replied on the same day:

"Lowest price for Bumper Hall Pen £900."

Harvey then replied in the following words:

"We agree to buy Bumper Hall Pen for the sum of nine hundred pounds asked by you. Please
send us your title deed in order that we may get early possession."[2]

Facey, however refused to sell at that price, at which Harvey sued. Facey successfully defended
his action at trial, but Harvey appealed to the Supreme Court, which reversed the trial court
decision. Facey appealed the Supreme Court decision to the Privy Council.[3] The Privy Council
reversed the Supreme Court's opinion, reinstating the trial court's decision and stating the reason
for its action.

[edit]Opinion of the Court

No contract existed between the two parties. The first telegram was simply a request for
information, so at no stage did the defendant make a definite offer that could be accepted.